...when you hold gobs of reserves in the currencies you want to manipulate, your domestic banking system is incredibly lax/corrupt, and you keep a tight national monetary policy to keep inflation (and demand from the plebes) in check.
I suspect there's also a lot of import restrictions, but don't know for sure. I can see how there'd be some incentive to protect farming interests in what's still a largely agrarian population.
Finally, contributing to the trade imbalance, the Chinese simply steal/counterfeit a lot of the technology and goods that the industrialized countries are making, as already mentioned. |
